MANAGEMENT DIRECT CONTROL CO-ORDINATE

MANAGEMENT FUNCTIONS 1. planning – making decisions / policy / methods - to achieve the objectives 2. co-ordinating – integrating activities in order to form a united strategy 3. motivating – encouraging 4. controlling – supervising and checking

STAKEHOLDER  Free Currency Trading eBook From Forex.com Free Currency Trading eBook From Forex.com  Home > Dictionary HomeDictionary  Stakeholder  What Does Stakeholder Mean? A party that has an interest in an enterprise or project. The primary stakeholders in a typical corporation are its investors, employees, customers and suppliers. However, modern theory goes beyond this conventional notion to embrace additional stakeholders such as the community, government and trade associations. Read more:

STAKEHOLDERS ECONOMIC ENVIRONMENT economic cycles, international competition FINANCIAL ENVIRONMENT banks, investors REGULATORY ENVIRONMENT government, legislation SOCIAL ENVIRONMENT welfare, ecology BUSINESS ORGANISATION

MANAGERS ARE RESPONSIBLE TO THE FIRM’S:  owners - to achieve the best possible return on the capital invested  clients - to provide goods and services of the specified quality, within the agreed time, at a fair price  employees – to provide the safest and most comfortable working conditions, to pay a fair wage

Two-tier corporate hierarchy a) Board of directors - elected by shareholders - internal – inside directors (executive) - external – outside directors (non-executive) - monitor managers (report to owners) - make strategic decisions: which markets to enter/pull off how to finance expansion develop new products acquire / take over new products by buying other companies

b) Management team - the CEO – the top manager - involved in day-to day operations - departmental managers (Finance, Production, Marketing, Legal, Research & Development, Distribution

HIERARCHY superior = a person of higher rank or position (a superior officer) subordinate = lower in rank or position

MANAGERS o set objectives o work out methods to achieve them o analyse the activities o divide the work into individual jobs o select people o form effective teams o motivate (pay, promotion) o measure the performance of the staff o train and develop their staff

1. MK: p: 13: 1,2

2. Make common business collocations: 1. set a) crises 2. allocate b) responsibility 3. take c) objectives 4. establish and maintain d) resources 5. deal with e) good relations

3. Use the following words to fill in the gaps: officers, managing director (CEO), subordinates, non-executive directors, managers, superiors, authority, board All the directors together are the ___________. _______________________________ are not managers of the company, they are outsiders who give advice but are not responsible for making decisions. The CEO or MD is supported by various executive _________________ or senior _________________________each with clearly defined ___________________ and responsibility. The __________________ is in charge of the way the company is managed on a day-to-day-basis. Management delegate responsibility to _________________________ and receive orders from ________________________.

4. Who controls a PLC? ____________________________ (owners of the company) ________________________ (elected by the shareholders) ___________________________ (appointed by the board)

5. Who are “fat cats”? ________________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________ _____________________________________________